WR Hambrecht Positive on eLong (LONG), Including Possibility of EXPE Takeover
WR Hambrecht reiterates their Buy rating on eLong Inc. (Nasdaq: LONG) after reviewing China's e-travel results through Q1 in a report titled "Countdown to Takeout?"
The analyst said the company will continue to ride on leader Ctrip's (Nasdaq: CTRP) coattails. According to analyst Andy Van Vleck potential catalyst for LONG include "(1) healthy top line growth as China's seasonally weakest quarter is behind us; (2) improving earnings visibility as the market anticipates eLong breaking even in 2H:06; (3) further 'institutionalization' as funds search for cheaper exposure to China e-commerce; (4) speculation surrounding possible takeout, and the likely premium paid, as October's expiration of Expedia's (Nasdaq: EXPE) standstill approaches."
The analyst said the company will continue to ride on leader Ctrip's (Nasdaq: CTRP) coattails. According to analyst Andy Van Vleck potential catalyst for LONG include "(1) healthy top line growth as China's seasonally weakest quarter is behind us; (2) improving earnings visibility as the market anticipates eLong breaking even in 2H:06; (3) further 'institutionalization' as funds search for cheaper exposure to China e-commerce; (4) speculation surrounding possible takeout, and the likely premium paid, as October's expiration of Expedia's (Nasdaq: EXPE) standstill approaches."
posted by Lon at 3:16 PM
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